The Impact of Brexit on the Automotive Industry

Published 13 November 2020
in Announcements
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It is probably not a huge surprise that the automotive industry is reacting to this rather inconsistently and perhaps later than is ideal, but there does seem to be more latitude than was suggested in 2019, when April 1st deadline was looming, as you will see below.

Below is our brand-by-brand guide as of 13th November 2020, clearly this can, and probably will, change.

With Audi confirming a price protection for orders by November 30th, now is a good time to consider options if you are thinking of ordering a new car.  There is also a fairly limited amount of stock on all major car brands at present due to the pandemic, so it is certainly wise to firm things up speedily to avoid missing out.

As ever, get in touch with our expert team if you need any advice on this or other matters pertaining to your next car.

 

Audi

Audi UK have confirmed price protection for all current orders and all orders placed by 30th November provided they are delivered to customers before 31 March 2021 and all other criteria are met.

This means both the finance and the vehicle pricing will not change, a major departure for Audi as a manufacturer, as in March 2019, the opposite was true.

 

Porsche

Despite being part of the same parent group (Volkswagen Audi Group), Porsche have not followed suit with Audi, and will not price protect vehicles delivered after December 31st.

This suggests that many orders will be cancelled by clients if the car looks to be delivering post 31st December, and a no deal Brexit is going ahead, shifting to global WTO rules and therefore tariffs.

We are monitoring the situation closer for our Porsche clients, and as things develop we will be advising the best course of action.

 

Jaguar Land Rover

You might think JLR, as a British manufacturer, would be in a positive position to manage a no deal transition.  However, with many models, including Jaguar E Pace and Land Rover Discovery now built in Eastern Europe, JLR has confirmed that all vehicles registered after 31st December may well be subject to a price increase.

 

Volvo

As of 18th November, Volvo issued information stating that Volvo will price protect sold orders up to the end of December regardless of when the car will be delivered. This includes even if duty and tariffs change as a result of a hard Brexit.

 

BMW

BMW have said that unless there is a free trade agreement with the EU additional customs duties are likely to be applied to BMW and MINI vehicles imported into the UK. This means that any vehicles which are delivered into the UK on or after 1 January 2021, regardless of date ordered, may have additional customs duties imposed on them.

Should there be a no-deal Brexit, BMW UK will provide details of the implications of that including any price changes for vehicles as soon as possible

 

Mercedes

Mercedes have announced that all Mercedes-Benz Financial Services Business Solutions Campaigns will be extended with orders/credit approvals until 31 December 2020 and registrations until 31 March 2021.